Albania Business & Corporate Tax: A 2026 Guide

Albania’s business tax system is one of the reasons founders look at the country in the first place: a moderate headline rate, a genuine zero-tax band for small companies, and a VAT regime that leaves the smallest businesses out entirely. This guide covers the taxes a company pays. If you’re relocating and want to understand personal and residency tax, read our separate guide to taxes in Albania instead — and see the Doing Business hub for the full setup picture.

Corporate income tax (CIT)

The standard corporate income tax rate is 15%, charged on taxable profit (income less deductible expenses). Albania taxes resident companies on worldwide income and non-resident companies only on Albanian-source income.

Crucially, small businesses below the turnover threshold currently pay 0% corporate income tax. This small-business exemption is the single biggest tax advantage for new and modestly sized ventures — but it has a defined turnover ceiling and a legislated end date, so confirm the current figures before relying on it.

Value added tax (VAT)

The standard VAT rate is 20%, with reduced rates for certain supplies (such as parts of tourism and a few specific goods). VAT registration is only mandatory once your rolling 12-month turnover exceeds the threshold (roughly €96,000); below that you may register voluntarily but are not obliged to. The VAT period is the calendar month, with returns and payment due in the following month. Note that the VAT threshold and the small-business CIT threshold are independent — you can be VAT-registered yet still under the CIT exemption, or vice versa.

Dividend and withholding tax

When the company distributes profit to its owners, an 8% dividend withholding tax applies. A general 15% withholding tax applies to many payments to non-residents — interest, royalties and certain service fees — though Albania’s network of double-tax treaties (around 45) often reduces this. Always check the relevant treaty before making cross-border payments.

How owners take money out: salary vs dividend

Owner-managers usually balance two routes: a salary (deductible for the company but subject to personal income tax and social contributions) and dividends (paid from after-tax profit and taxed at 8%). The efficient mix depends on your profit level and whether you also need a salary for residency or social-security reasons — a point to work through with a local accountant.

Social and payroll taxes

If you employ people (including yourself as a director on payroll), the company withholds personal income tax and pays employer social and health contributions on top of gross salary. These are covered in hiring employees in Albania and factored into the cost of doing business.

Local and other taxes

Beyond national taxes, municipalities levy local business taxes that vary by activity, turnover and location, plus property and minor fees. These are modest but should be in your budget.

Incentives that change the picture

Free-zone status, strategic-investor treatment and sector schemes can reduce or defer these taxes substantially — see investment incentives and free zones.

This guide explains the general framework and is not legal, tax or accounting advice. Rules, rates and thresholds change — confirm the specifics for your situation with a qualified Albanian lawyer or accountant before you act.